Allowances under various heads given to Members of Parliament will also be increased.
Presenting his fifth budget, Finance Minister Arun Jaitley on Thursday also proposed a law for an automatic revision of salaries for MPs every five years indexed to inflation.
There has been a public debate on salaries paid to members, and the present practice allowing them to fix their own emoluments had invited criticism, Mr Jaitley said.
"I am, therefore, proposing necessary changes to refix the salary, constituency allowance, office expenses and meeting allowance payable to Members of Parliament with effect from April 1, 2018," he said.
Members, he said, would welcome this initiative and "not suffer such criticism in the future".
At present, the remuneration of an MP includes a basic salary of Rs 50,000 per month and Rs 45,000 as constituency allowance, apart from other perks. The government currently spends roughly Rs 2.7 lakh on every MP per month.
Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on ndtv.com/elections. Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections.